2008 is still a long ways away, and voters have a short memory. Clinton had a low approval rating after trying to introduce NAFTA and universal healthcare. His party got spanked in the 1994 election. But he turned it around in time to live up to his nickname as the "Comeback Kid".
Nevertheless, I am personally one of the vultures circling the wounded GOP elephant. I want fiscal conservatives to defect to the Libertarian Party. Will those wounds heal in time for November? People who think Hillary will be the nominee in '08 are like those who predicted the Patriots would win Superbowl XL back in March. It really is too early to tell, and there is too much that can happen between now and then.